European money market funds experience worst September flows on record

James Baxter-Derrington
clock • 1 min read
European money market funds experience worst September flows on record

European money market funds recorded their worst September outflows ever, with €57bn leaving the space in a single month, according to data from the European Fund and Asset Management Association.

Net sales of UCITS and AIFs was just €9bn, down 83% from August's figure of €53bn, with AIFs the only positive contributor over the month.

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UCITS funds recorded net outflows of €3bn in September 2021, compared to net inflows of €72bn the previous month, with the €57bn of flows haemorrhaging from money market funds enough to negate the positive flows of equity, bond and multi-asset flows across the region.

Flows were down across the UCITS board, with equity funds recording net sales of €19bn compared to €22bn the previous month and bond funds down to €13bn of positive flows from €19bn in August.

Multi-asset funds were the only UCITS asset class to increase over September 2021, up slightly to €20bn from €19bn in August.

AIFs registered net inflows of €13bn, reversing its August outflows of €19bn.

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The total net assets of UCITS and AIFs across Europe decreased by 1.2% over the course of September, to rest at €20.8trn.

Bernard Delbecque, senior director for economics and research at EFAMA, said: "Money market funds recorded the largest monthly net outflows ever observed, which gives a good indication of investors' risk sentiment and confidence in capital markets in September."